Viterra to divest N. American feed business
Feb. 15, 2012
by Meat&Poultry Staff
CALGARY, Alberta – Viterra Inc. will divest its North American livestock feed operations to Hi-Pro Feeds LP, the company announced on Feb. 15. Hi-Pro is a newly formed entity that is owned by Birch Hill Equity Partners and the existing management team of the livestock feed business.
The agreement includes all of Viterra's North American feed assets: six feed mills and one pre-mix manufacturing facility in Canada and six mills and a commodity blending site in the US.
"The processing segment is important to Viterra's vertically integrated business model as it allows us to generate additional margin on the core commodities we handle and provides diversification to our earnings," said Mayo Schmidt, president and chief executive officer of Viterra. "The company will continue to look for opportunities to grow its processing portfolio in industries where it can achieve scale and influence and this divestment will allow us to focus our capital on areas of greatest strategic impact. We are pleased that Hi-Pro intends to maintain continuity for the staff and customers of the livestock feed business going forward."
Viterra said the decision to divest its North American feed business was based on a strategic review process and does not include or affect its New Zealand feed assets. The transaction is expected to close during Viterra's second fiscal quarter pending completion of customary closing conditions, including regulatory approvals.